POMONA  SCHOOLS  BULLETIN 

FISCAL  NUMBER  July  1,  1916 


A  Primer  of  School  Finance 

for 

Patrons  of  Pomona  Schools 


OF 


POPULATION    1916—15,750 


A  PRIMER 

'  :-  "   OF  ;.;   .,  ,  li; 
SCHOOL  FINANCE 


BY 


G.    VERNON    BENNETT,    J.D. 

City  Superintendent  of  Schools, 
Pomona,   California 

Formerly   Treasurer,   Province  of  Leyte,  P.  I., 
and  Auditor  of  Municipal  Accounts 


BUREAU  OF  GOVERNMENTAL  RESEARCH 

LIBRARY 
44  LIBRARY  BUILDING 


BOARD    OF    EDUCATION 

ALLEN   P.  NICHOLS,  President 
C.  E.  GREASER,  (nominated  from)  1st  Ward 
C.  F.  SAWYER,  "  "      2nd      " 

J.  F.  LOBINGIER,        "  "      3rd      " 

C.  D.  BAKER,  "  "      4th      " 


ADMINISTRATION 

G.  VERNON   BENNETT,  Superintendent  and 
Secretary  Board  of  Education 


A  PRIMER  OF  SCHOOL  FINANCE 

BY 

G.    VERNON    BENNETT 


Lesson  I— INTRODUCTION 

A  Treatise  is  a  book  that  describes  and  explains  the  plan,  workings  and 
details  of  a  subject,  giving  rules  and  exceptions. 

A  Primer  is  a  book  that  describes  in  a  very  simple  way  the  general  plan 
of  a  subject,  giving  the  most  general  rules. 

This  little  book  is  not  a  treatise:  it  is  a  primer  for  the  use  of  beginners. 
Many  people  —  even  adults  and  wise  men  —  prefer  to  begin  the  study  of  a 
subject  through  a  Primer.  Such  a  book  gives  one  a  general  view  of  the 
subject,  and  at  the  same  time  gives  enough  facts  and  information  for  the 
average  man  or  woman. 

There  are  many  important  facts,  rules,  and  exceptions  of  school  finance 
that  are  not  contained  in  this  book.  The  most  important  facts  and  rules  of 
school  finance  are  described  here. 

This  Primer  treats  of  school  money,  whence  it  comes,  how  it  is  distrib- 
uted to  schools,  and  how  it  must  be  spent. 

Lesson  II— SCHOOL  DISTRICTS 

The  most  absolutely  necessary  fact  for  the  beginner  to  know  about 
California  schools  is  our  district  system.  The  following  are  the  most  im- 
portant districts: 

Common  (or  Elementary)  School  District 
High  School  District 
Union  High  School  District. 

In  cities  and  most  towns  the  Common  'School  District  has  the  same 
boundaries  as  the  High  School  District;  but  the  important  fact  must  not  be 
lost  sight  of,  is  that  they  are  two  distinct  districts,  with  two  distinct  Boards 
of  Education,  and  with  distinct  systems  of  finance.  The  men  composing 
these  two  boards  are,  however,  the  same.  Thus,  Messrs.  Nichols,  Greaser, 
Sawyer,  Lobingier  and  Baker  compose  the  Pomona  Elementary  School 
Board,  and  they  also  compose  the  Pomona  High  School  Board.  They  hold  a 
meeting  as  the  Elementary  School  Board,  adjourn,  then  hold  a  meeting  as 
the  High  School  Board. 

A  Union  High  School  District  contains  two  or  more  Common  School 
Districts,  united  for  High  School  purposes  only.  Each  Common  School 
District  has  its  school  board,  and  the  Union  High  School  District  has  an 
entirely  separate  board  composed  of  different  men. 


PRIMER    OF    SCHOOL    FINANCE 


Lesson    III  -  JURISDICTION 
OF  VARIOUS  BOARDS 

The  Common  (Elementary) 
School  Board  governs  the  Kin- 
dergarten and  the  Elementary 
School.  In  many  communities 
this  latter  school  includes 
grades  One  to  Eight  inclu- 
sive. But  where  Intermediate 
Schools  exist,  the  Elementary 
School  includes  grades  One  to 
Six,  inclusive,  only. 

The  High  School  Board 
governs  the  High  School,  the 
Junior  College,  and  the  Inte- 
mediate  Schools.  The  Inter- 
mediate school  contains,  ordi- 
narily, the  7th,  8th  and  9th 
grades.  The  High  School  con- 
tains the  10th,  llth  and  12th 
grades,  and  in  districts  where 
there  is  no  Intermediate 
School  the  9th  grade  also. 
The  Junior  College  may  be 
said  to  contain  the  13th  and 
14th  grades. 

Common  School  Boards  may 
establish  Evening  Elementary 
Schools  and  Technical  Schools. 
High  School  Boards  may  es- . 
tablish  Evening  Secondary 
Schools  and  Technical  Schools. 

Union  High  School  Boards 
govern  the  High  School.  Un- 
ion High  School  Boards,  unlike 
City  High  School  Boards, 
cannot  establish  Intermediate 
Schools  without  the  consent 
of  the  voters  of  the  various 
common  school  districts  con- 
tained in  the  Union  High 
School  District. 


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A  PRIMER  OP  SCHOOL  FINANCE 


Lesson  IV— THE  KINDERGARTEN 

Where  the  kindergarten  exists  it  is  supported  entirely  out  of  the  local 
kindergarten  tax.  The  rate  can  never  exceed  10  cents  on  the  $100  of  tax- 
able wealth.  Suppose  the  assessor's  list  shows  that  all  the  real  estate  in 
your  district  is  valued  at  $1,000,000.  Then  at  10  cents  for  each  $100  the  tax 
will  yield  each  year  $1000.  This  will  have  to  pay  your  kindergarten  teacher, 
janitor,  and  for  supplies,  fuel,  etc. 

The  kindergarten  tax  is  paid  along  with  other  taxes  to  the  County  Tax 
Collector  and  deposited  in  the  County  Treasury,  and  is  paid  out  of  the  County 
Treasury  in  small  quantities  upon  presentation  to  the  County  Treasurer  of  a 
Warrant  signed  by  the  President  and  Clerk  of  the  Elementary  School  Board, 
and  approved  by  the  County  Superintendent  and  the  County  Auditor. 

How  much  tax  (at  a  10-cent  rate)  will  a  man  pay  whose  house  and  lot 
are  assessed  at  $8,000?  If  the  rate  is  8  cents? 

What  is  the  assessed  valuation  of  your  District? 

Suppose  it  would  cost  $800  per  year  to  run  a  kindergarten  in  your  Dis- 
trict, is  your  District  rich  enough  to  yield  that  much  money  at  a  10-cent 
rate?  At  an  8-cent  rate?  At  a  5-cent  rate? 

Lesson  V— ELEMENTARY  SCHOOLS:  STATE  AID 

The  Elementary  School  derives  support  from  State,  County  and  District. 
The  State  aid  is  based  upon  (1)  the  number  of  statutory  teachers  and  (2) 
the  average  daily  attendance,  as  follows: 

(1)  For  each  statutory  teacher  $250  per  year.     How  may  a  district 
know  the  number  of  statutory  teachers  to  which  it  is  entitled?    The  number 
is  arrived  at  by  dividing  the  average  daily  attendance  of  last  year  by  35, — 
the  quotient  is  the  number  of  statutory  teachers,  one  teacher  being  allowed 
for  a  remainder  greater  than  9.     A  district  with  an  attendance  of  5,  8,  15, 
35,  or  44  would  be  entitled  to  one  statutory  teacher,  and  only  one.     A  dis- 
trict of  45  would  be  entitled  to  two — one  for  its  unit  of  35  and  one  for  its 
surplus  of  10.     To  how  many  would  an  average  daily  attendance  of  350 
entitle  a  district?    359?    360?    370?    385?     In  addition  for  each  700  average 
daily  attendance,  two  teachers  are  allowed.     For  an  average  daily  attend- 
ance of  700  there  would  be  22  teachers,  etc. 

The  term  "statutory  teacher"  has  nothing  to  do  with  the  number  of 
teachers  employed.  A  district  usually  has  more  teachers  than  statutory 
teachers. 

(2)  After  all  this  money  has  been  apportioned  there  is  usually  a  great 
deal  left  in  the  State  school  fund.     This  amount  left  is  distributed  among 
the  various  districts  on  the  basis  of  strictly  average  daily  attendance. 

In  1915-16  there  accumulated  in  the  State  treasury  $5,406,990.  In  Sep- 
tember, 1915,  the  State  Superintendent  ascertained  that  all  the  districts  in 
the  State  combined  were  entitled  to  11,645  statutory  teachers.  At  $250  for 
each,  he  distributed  $2,911,250.00  to  the  districts.  He  then  had  $2,495,740 


6 A  PRIMER  OF  SCHOOL  FINANCE 

left,  which  he  apportioned  in  February,  1916,  to  the  various  districts  on  a 
basis  of  average  daily  attendance  for  1914-15.  The  total  average  daily 
attendance  for  the  State  was  331,000,  and  gave  a  rate  of  $7.54  per  pupil. 
Pomona  received  $13,187.46.  What  was  her  average  daily  attendance  for 
1914-15? 

This  latter  sum,  on  the  average  daily  attendance  basis,  varies  somewhat 
from  year  to  year.  In  general,  however,  a  district  will  receive  from  the 
State  on  the  above  basis,  $250  per  statutory  teacher  and  in  addition  $7.54 
per  unit  of  average  daily  attendance. 

Lesson  VI— ELEMENTARY  SCHOOLS :  COUNTY  AID 

We  have  described  in  the  preceding  lesson  the  basis  for  State  aid  to 
elementary  schools.  In  this  lesson  we  explain  the  County  aid  and  how  the 
amount  is  arrived  at.  The  County  must  provide  an  amount  sufficient  so  that 
when  the  State  aid  is  added  a  district  will  receive  at  least  $550  per  statutory 
teacher.  We  showed  in  the  preceding  lesson  that  during  1915-16  a  district 
in  Los  Angeles  county  received  from  the  State  $250  per  statutory  teacher. 
It  follows  that  the  County  must  then  furnish  each  statutory  teacher  at 
least  $300. 

In  addition,  the  county  must  raise  a  sufficient  amount  so  that  each 
district  will  receive  on  the  average  daily  attendance  basis  at  least  $13.00. 
In  Lesson  V  we  saw  that  during  this  year  each  district  received  from  the 
State  $7.54  per  pupil.  Then  the  county  would  have  to  give  each  district 
$13.00  minus  $7.54,  or  $5.46  per  pupil. 

These  sources  will  stand  out  more  clearly  if  I  give  an  example:  Pomona 
had  an  average  daily  attendance  of  1749  for  1914-15,  and  on  the  plan  de- 
cribed  in  Lesson  V  was  entitled  to  54  statutory  teachers.    In  1915-16  Pomona 
received  in  her  elementary  funds  the  following  amounts: 
COUNTY     STATE 

$13,500       from  the  State    at  $250  per  each  of  54  stat.  teachers 
$16,200  "      "    County  "  $300     "      "      "    "      " 

Total  -  $550     "      "      "    "      " 

$13,187.46      "       "   State     "   $7.54  "      "     "  1749  av.  daily  att. 
$7,800.54  "       "    County"    $5.46"       "      "     "      "       " 


Total  -  $13.00  " 


$24,000.54  $26,687.46    or  $50,688.00  from  both  State  and  County. 

Lesson  VII— ELEMENTARY  SCHOOLS:  DISTRICT  TAX4 

Some  districts  manage  to  support  their  schools  entirely  from  State  and 
County  aid;  but  most  districts  have  to  have  a  district  tax  also. 

Now  the  districts  need  to  raise  only  enough  money  so  that,  when  added 


A    PRIMER    OF    SCHOOL    FINANCE 7 

to  State  and  County  aid,  there  will  be  a  sufficient  amount  to  run  the  schools. 

Suppose  it  costs  a  certain  country  district  $1305  per  year  to  run  its  school, 

and  suppose  the  average  daily  attendance  was   35  pupils,    then  it  would 

receive  from  State  and  County 

At  $550  per  teacher $550.00 

At    $13  per  pupil 455.00 

$1005.00 

there  would  still  remain  $1305.00  minus  $1005.00,  or  $300.00  that  would  have 
to  be  raised  by  a  district  tax. 

In  this  case  the  School  Board  would  meet  and  make  out  its  budget  of 
expenses  somewhat  as  follows: 

Teacher's  Salary $1000.00 

Janitor's  Salary 100.00 

Repairs  100.00 

Supplies,  etc 105.00 


Total $1305.00 

State  and  County  Aid 1005.00 

Balance  to  be  raised  by  special  tax  $300.00 

A  "special"  tax  means  simply  a  District  tax. 

The  budget  would  then  be  signed  by  the  School  Board  and  sent  to  the 
County  Superintendent,  who  would  approve  it  and  transmit  it  to  the  County 
Board  of  Supervisors.  The  Supervisors  would  ascertain  the  assessed  valu- 
ation of  the  district  and  would  levy  a  tax  sufficient  to  raise  $300.00.  But 
the  law  will  not  permit  a  higher  rate  than  30  cents  on  the  hundred  dollars. 

If  the  assessed  valuation  of  the  district  was  $100,000,  then  the  maximum 
rate  of  30  cents  would  just  raise  $300.  If  the  assessed  valuation  was 
$200,000,  then  a  15-cent  rate  would  be  sufficient.  But  if  the  assessed  valu- 
ation was  only  $80,000,  then  a  30-cent  tax  would  yield  only  $240.00,  and  the 
School  Board  would  have  to  reduce  the  expenses  of  the  district.  In  this 
latter  case  the  district  would  receive  only 

$  240  from  the  Special  Tax 
1005  from  the  State  and  County  Aid 


$1245  Total 
The  Board  would  have  to  cut  down  expenses  so  as  to  keep  within  its  income. 

Lesson  VHI-HOW  THE  FUNDS  ARE  DISTRIBUTED 

The  assessment  of  property  is  made  each  year  in  January,  February 
and  March.  The  Assessor  goes  about  from  house  to  house  until  the  whole 
district  and  the  whole  county  are  covered.  The  lists  are  collected  and  an 
assessment  roll  is  compiled.  By  July  1  anyone  may  know  what  the  assessed 
valuation  of  his  district  is. 


8  A    PRIMER    OF    SCHOOL    FINANCE 


The  city  superintendents  and  district  clerks  make  their  reports  on  July  1, 
so  that  shortly  thereafter  one  may  know  the  average  daily  attendance  and 
the  number  of  statutory  teachers  corresponding  to  each  district  of  the 
county  and  State. 

With  all  these  data  in  hand  one  may  figure  out  very  readily  how  much 
money  each  district  is  going  to  receive  for  the  coming  year.  The  funds  for 
1916-17  will  all  depend  upon  the  average  daily  attendance  of  1915-16,  the 
statutory  teacher  allowance  based  upon  said  attendance  for  1915-16,  and  the 
assessed  valuation  of  property  taken  from  the  assessment  made  in  the 
spring  of  1916. 

The  funds  are  not  all  poured  into  the  District's  vaults  at  the  County 
Treasurer's  office  at  once.  Instead  they  come  in  four  quarterly  apportion- 
ments about  as  follows: 

About  October  8,  1916,  comes  from  the  State  an  apportionment  based 
on  the  $250  allowance  per  teacher. 

About  January  1st  to  20th,  County  aid  based  on  the  $300  per  teacher, 
and  possibly  two-thirds  of  the  Special  Tax  (on  the  District)  money. 

About  March  1,  State  aid  on  the  Average _Daily  Attendance  basis. 

About  May  20,  County  aid  on  the  Average  Daily  Attendance  basis,  and 
the  remaining  one-third  of  the  District  Special  Tax  money. 

Suppose  that  the  District  had  no  balance  July  1,  but  had  to  make  sev- 
eral payments  in  July,  August,  September  and  early  October.  How  could 
it  make  those  payments  when  it  had  no  funds  in  the  County  Treasury  to  its 
credit?  The  laws  of  California  provide  that  the  districts  may  draw  warrants 
against  an  empty  treasury  up  to  90  per  cent,  [see  School  Law,  p.  200]  of 
the  amount  of  the  next  apportionment.  These  warrants  will  be  honored  by 
the  County  Treasurer  and  paid  by  him  out  of  any  surplus  funds  he  may  have 
on  hand.  (When  the  apportionment  is  made  and  funds  belonging  to  the 
borrowing  district  come  into  the  county  treasury,  then  the  County  Treasurer 
takes  out  of  the  District's  funds  the  amount  borrowed  and  returns  it  to  the 
fund  from  which  it  was  borrowed.) 

Lesson  IX— HIGH  SCHOOL  FUNDS :  STATE  AID 

High  School  districts  derive  their  funds  from  three  sources,— from  the 
State,  from  the  County,  and  from  the  District. 

Each  year  the  State  of  California,  in  order  to  encourage  secondary 
education,  distributes  a  small  amount  of  funds  to  the  various  high  schools. 
As  soon  as  it  is  learned  how  much  money  has  accumulated  at  Sacramento 
in  the  High  School  Fund,  the  State  Superintendent  distributes  the  money 
through  the  County  Superintendent  and  county  treasury  to  the  various  high 
school  districts. 

One-third  of  the  total  amount  is  distributed  equally  among  the  high 
schools  of  the  State  irrespective  of  the  size  of  the  school.  A  school  of 
20  pupils  gets  as  much  as  a  school  of  2400  pupils. 


A    PRIMER    OF    SCHOOL    FINANCE 


The  other  two-thirds  is  distributed  to  the  various  high  schools  on  a 
basis  of  average  daily  attendance.  A  school  of  2400  average  daily  attend- 
ance pupils  would  get  120  times  as  much  money  as  the  school  having  an 
average  daily  attendance  of  only  20. 

In  1915-16  the  apportionment  of  the  one-third  of  the  State  High  School 
Fund  was  on  a  basis  of  $1007.85  per  high  school,  while  that  of  the  remain- 
ing two-thirds  was  on  a  basis  of  $9.99  per  pupil. 

The  schools  referred  to  above  would  have  received  as  follows: 

SMALLER       LARGER 
SCHOOL        SCHOOL 

On  basis  of  being  a  High  School $1,007.85    $  1,007.85 

On  basis  of  average  daily  attendance  at  $9.99  per  unit         199.80      23,976.00 

$1,207.65    $24,983.85 

In  1914-15  the  apportionments  were  $9.99  per  pupil  and  $947.45  per 
school.  As  these  amounts  are  not  likely  to  change  materially,  one  can 
readily  work  out  what  his  school  is  likely  to  receive  next  year  from  the 
State. 

Lesson  X-HIGH  SCHOOL  FUNDS:  COUNTY  AID 

County  aid  to  high  schools  is  provided  for  in  a  new  law.  High  schools 
have  not  received  aid  from  the  county  until  this  year  (1915-16) . 

The  county  gives  aid  on  the  following  bases: 

(a)  For  being  a  high  school,  $250  per  teacher  actually  employed  the 
preceding  year,  but  for  not  more  than  four  teachers.  If  a  high  school  had 
employed  two  teachers  in  1914-15,  then  it  would  receive  $500  this  year;  if 
three,  then  $750;  if  four,  then  $1000;  if  twenty,  then  $1000  only.  If  it  is 
absolutely  new  this  year,  then  it  receives  $1000  this  year. 

(6)  On  average  daily  attendance  basis,  the  rest  of  the  money  left  in 
the  County  High  School  Fund.  The  amount  is  uncertain,  but  the  calculation 
is  on  the  basis  of  $60  per  pupil  of  average  daily  attendance  for  the  preced- 
ing year. 

(c)  To  reimburse  the  district  for  the  payment  of  transportation  of 
pupils  not  living  in  a  high  school  district — the  actual  amount  paid,  but  not 
exceeding  $5.00  per  month  per  pupil. 

Let  us  illustrate.  High  School  District  Q  had  twenty-five  teachers  in 
1914-15  on  full  time,  and  average  daily  attendance  of  400  pupils,  seven  of 
whom  had  been  brought  from  a  grammar  school  district  that  was  not  in  a 
high  school  district  at  a  cost  for  transportation  of  $60  each  for  the  year  of 
ten  months. 

On  teacher  basis  of  $250  each,  but  not  exceeding  four $  1,000.00 

On  average  daily  attendance  basis  of  400  pupils  at  $60  each 24,000.00 

Transportation  of  7  pupils  at  not  to  exceed  $5  each  per  month,  $50x7  350. 00 

Total  County  Aid $25,350.00 


10 A    PRIMER    OF    SCHOOL    FINANCE 

Lesson  XI— HIGH  SCHOOL  FUNDS ;  DISTRICT  TAX 

If  the  funds  derived  from  the  state  and  county  are  not  sufficient  to  sup- 
port the  high  school,  the  High  School  Board  must  raise  the  rest  of  the 
money  by  a  direct  tax  upon  the  people  of  the  district.  It  does  not  require  a 
vote  of  the  voters  of  the  district;  but  the  amount  needed  is  asked  for  by 
the  Board  of  Education  and  the  rate  of  taxation  necessary  to  raise  that 
amount  is  fixed  by  the  County  Board  of  Supervisors. 

Suppose  in  a  certain  high  school  district  that  it  will  take  $50,000  to  run 
the  high  school  for  next  year,  but  that  by  careful  calculation  the  State  Aid 
will  be  only  $5,000  and  the  County  Aid  only  $25,000.  Then  the  District 
Board  will  say  to  the  Supervisors,  "We  must  have  $20,000  raised  by  a  local 
or,  as  it  is  called,  Special  Tax."  The  assessed  valuation  of  the  District  is 
$4,000,000.  Then  the  Supervisors  must  levy  a  Special  Tax  of  50  cents  on 
the  $100  for  the  ensuing  year. 

But  the  rate  is  not  unlimited.  The  laws  of  California  say  very  plainly 
that  no  matter  how  much  the  district  may  want  to  tax  itself,  the  High 
School  Special  Tax  rate  can  never  exceed  75  cents  on  $100. 

Suppose  in  the  above  case  cited,  the  assessed  valuation  of  the  district 
had  been  only  $2,000,000.  Even  though  the  district  needed  $20,000,  it  could 
raise  only  $15,000,  for  the  Supervisors  could  impose  no  greater  rate  than 
75  cents,  which  would  yield  only  $15,000  in  taxes.  What  would  the  District 
Board  do  in  such  a  case?  It  needs  $50,000;  it  can  raise  only  $45,000.  Well, 
it  would  have  to  cut  down  its  expenses  by  economy,  eliminate  a  teacher  or 
two,  reduce  amount  of  supplies  and  equipment  to  be  purchased,  etc. 

Finally,  let  us  calculate  the  maximum  income  of  a  High  School  District 
whose  average  daily  attendance  this  year  in  Day  School  is  1000  and  in 
Evening  High  School  is  100,  which  employed  35  full-time  teachers  in  Day 
School  and  three  full-time  teachers  in  Night  School,  the  assessed  valuation 
of  which  is  $8,000,000.  Twenty  pupils  were  transported  at  $4.00  each  per 
month,  10  months. 

State  Aid:  2  High  Schools,  at  $1007.85 $2,015.70 

State  Aid:  1100  average  daily  attendance  at  $9.99 10,989.00 

County  Aid:  Teacher  basis—Day  4,  Night  3,  at  $250 1,750.00 

County  Aid:  1,100  average  daily  attendance  at  $60 66,000.00 

County  Aid :  Transportation  20  pupils  at  $40  each  800. 00 

Special  (District  Tax)  at  75  cents  per  $100 60,000.00 

Total  Income $141,554.70 

Lesson  XII— BUDGET  OF  A   UNION  HIGH   SCHOOL    DISTRICT  AND 
THE  CONSTITUENT  ELEMENTARY  SCHOOL  DISTRICTS 

Let  us,  for  a  clearer  understanding  of  the  law  that  enables  the  High 
School  Board  to  take  over  the  7th  and  8th  grades,  use  an  illustration.  Let 
us  suppose  that  in  the  Gridley  Union  High  School  District  the  people  of  the 


A    PRIMER    OF    SCHOOL    FINANCE 11 

various  elementary  school  districts  decide  to  send  the  7th  and  8th  grade 
children  to  High  School  and  pay  a  small  amount  to  the  High  School  District 
for  educating  those  children. 

No. 

Children  No.  in        No.  in      No.         No. 

Assessed        in  1-6  7  and  8        9-12        Ele.       H.S. 

District               Valuation      Grades  Grades      Grades  Teach.  Teach. 

Gridley  City $1,600,000           320  100                           9 

Manzanita 200,000              70  15                            2 

West  Liberty 200,000              70  15                            2 

Butte  50,000             25  5                           1 

Live  Oak 50,000             25  5                           1 

East  Gridley 100,000             40  10                            1 


Gridley  Union  H.  S.    $2,200,000  150  150  12 

BUDGET— GRIDLEY  CITY 

Payment  to  Gridley  Union  High  School  District  for  the  educating 

of  100  pupils $1,000.00 

Salaries  of  9  Teachers  and  Principal  9,000.00 

Operating,   Maintenance,  Janitors,  etc 2,750.00 


Proposed  expenditures $12, 750.00 

State  and  County  Aid  (average  daily  attendance  1st  to  8th  grades 

inclusive  for  past  year,  say  350)  $10, 050.00 

Special  Tax  (rate  17  cents) 2,720.00 

$12,770.00 

BUDGET— MANZANITA  DISTRICT 
(West  Liberty  just  the  same.) 

Payment  to  Gridley  Union  High  School,  for  educating  15  pupils 

at  $10  each $    150.00 

Salaries  of  two  teachers 1,800.00 

Operating,  Maintenance,  etc 660.00 

$2,610,00 

State  and  County  Aid  (average  daily  attendance  1st  to  8th  inclu- 
sive for  past  year,  say  70) $2,010.00 

Special  Tax  (rate  30  cents) .- 600.00 

$2,610.00 


12 A    PRIMER    OF    SCHOOL    FINANCE 

BUDGET— BUTTE  ELEMENTARY  DISTRICT 

Payment  to  Gridley  Union  High  School  District  for  educating 

five  pupils $      50.00 

Salary  of  one  teacher 740.00 

Operating,  Maintenance,  Janitor,  etc 300.00 

$1,090.00 

State  and  County  Aid  (average  daily  attendance  1st  to  8th  grades 

inclusive,  for  past  year,  say  30) $    940.00 

Special  Tax  (at  maximum  rate  of  30  cents)  150.00 


$1,090.00 

BUDGET— EAST  GRIDLEY  ELEMENTARY  DISTRICT 

Payment  to  Gridley  Union  High  School  District  for  educating  ten 

(7th  and  8th  grade)  pupils $    100.00 

Salary  of  one  teacher 900.00 

Operating,  Maintenance,  Janitor,  etc 300.00 

$1,300.00 

State  and  County  Aid  (average  daily  attendance  1st  to  8th  grades 

inclusive  for  past  year,  say  45)  $1,685.00 

Special  Tax  (none  necessary) 

$1,685.00 

It  will  be  seen  from  a  study  of  the  above  budgets  that  it  is  of  immense 
benefit  to  every  district  to  have  its  7th  and  8th  grade  pupils  taught  by  the 
High  School.  In  the  first  case,  if  the  Elementary  district  had  not  sent  her 
Intermediate  pupils  to  High  School,  Gridley  City  District  would  have  had 
to  have  three  more  teachers  at  a  cost  of  $2,700,  and  with  additional  sup- 
plies, desks,  etc.,  amounting  to  at  least  $400,  making  a  total  charge  of 
$3100.  Subtracting  from  this  amount  the  $1,000  to  be  paid  to  the  High 
School,  there  would  have  been  a  total  additional  burden  of  $2100.  This 
would  require  a  30-cent  instead  of  a  15-cent  Special  Tax. 

In  Manzanita  and  West  Liberty  an  additional  teacher  each  would  have 
been  required,  and  this  additional  cost  could  not  have  been  met,  because 
the  Special  Tax  is  already  at  the  maximum  of  30  cents. 

It  would  have  affected  East  Gridley  by  causing  her  to  employ  a  second 
teacher,  which  would  have  necessitated  a  Special  Tax  of  about  30  cents.  It 
would,  therefore,  be  greatly  to  the  financial  benefit  of  each  grammar  school 
district  to  enter  into  arrangements  for  the  education  of  its  7th  and  8th 
grade  pupils  in  the  Intermediate  High  School. 


A    PRIMER    OF    SCHOOL    FINANCE 13 

Lesson  XIII— HOW  THE  MONEY  IS  USED 

The  laws  of  California  provide  that  money  derived  from  certain  funds 
shall  be  spent  in  certain  ways. 

All  funds  received  from  the  State  must  be  spent  for  teachers'  salaries, 
and  for  that  alone.  No  janitor's  salary  or  payment  for  supplies  or  repairs 
can  be  paid  out  of  the  State  funds. 

At  least  one-half  of  county  elementary  school  funds  must  be  used  in 
payment  of  teachers'  salaries.  The  other  half  may  be  spent  for  any  pur- 
pose for  which  the  law  allows  schools  to  spend  money. 

The  Special  Fund  (derived  from  a  direct  tax  on  property  within  a 
school  district)  may  be  spent  for  any  school  purpose,  such  as  purchase  of 
supplies,  payment  of  repairs,  teachers'  salaries,  other  employees'  salaries, 
purchase  of  land  or  equipment. 

No  State  or  County  Funds  can  be  spent  for  Summer  School  or  Vacation 
School  salaries.  If  such  schools  are  maintained,  they  must  be  supported 
out  of  Special  (District)  Fund. 

County  High  School  Funds  may  be  spent  for  maintenance  purposes, 
such  as  teachers'  and  janitors'  salaries,  supplies,  repairs,  etc. 

Kindergarten  Funds  must  be  spent  for  kindergarten  purposes. 

Elementary  School  Fnnds  must  be  spent  only  for  Elementary  School 
purposes. 

High  School  Funds  must  be  used  only  for  High  School  purposes,  and  for 
the  7th  and  8th  grades  when  those  two  grades  are  included  in  an  established 
Intermediate  School. 

In  making  payments  of  any  kind,  the  payment  must  be  made  by  a  war- 
rant drawn  on  the  County  Treasurer.  Said  warrant  must  be  signed  by  the 
President  and  Clerk  of  the  District  School  Board  and  approved  by  the 
County  Superintendent  and  County  Auditor. 

[For  sample  of  High  School  Warrant  see  page  14.] 

Lesson  XIV-HOW  THE  MONEY  IS  RAISED 

We  have  seen  in  former  lessons  how  the  District  Funds  are  raised, 
namely  by  the  Special  Tax, — the  maximum  for  which  is,  for  Kindergarten 
purposes  10  cents,  for  Elementary  School  purposes  30  cents,  and  for  High 
School  purposes  75  cents. 

We  must  now  describe  how  the  County  and  the  State  raise  the  funds 
which  they  use  to  aid  education  in  the  various  districts. 

The  County  raises  all  of  its  money  by  direct  taxes  on  the  real  and  per- 
sonal property  within  its  boundaries.  As  we  have  learned  in  previous 
lessons,  the  County  must  raise  enough  elementary  school  money  so  that 
when  it  is  added  to  the  State  aid  there  shall  be  enough  to  distribute  to  the 
districts  $550  for  each  statutory  teacher  and  $13  for  each  unit  of  average 


14 


A    PRIMER    OF    SCHOOL    FINANCE 


daily  attendance.    But  the  rate 

^ 

s 

of   taxation    for    this  purpose 

"o         « 

^ 

shall  never  exceed  fifty  cents 

I          1 

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9 

on  the  $100  of  assessed  valua- 

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a 

tion.     In  Los  Angeles  County 

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in  1915  the  rate  necessary  was 

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only  17  cents,  and  this  was  the 

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rate  actually  imposed. 

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The  County  must  also  levy 

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a  County  High  School  tax  suf- 

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High    School     District    $60.00 

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$60     per     pupil    is    the    fixed     £ 

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in    Los    Angeles    County   was     < 

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14.5  cents  on  the  $100  of  as-     ^ 

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sessed  valuation.                              . 

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There  is  a  permanent  State     Q 

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School  Fund  which  cannot  bs 

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poses,    but   only    the    interest     03 

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thereon  can  be  used  for  school 

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purposes,  and  then  only  as  aid 

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to     the     Elementary    schools.      H 

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This  Permanent  State  School     £ 

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Fund  now  amounting  to  over 

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$7,500,000  is  derived  from  the 

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following  sources: 

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^    B 

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(1)     Sale   of    State    school 

5^ 

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lands. 

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(2)     Sale  of  estates  left  by 

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persons  dying  without  leaving 

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a  will  or  heirs. 

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(3)     Such     percentage     as 

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may  be  granted  by  Congress 

•*•»  *"*  - 

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a*  ^™  '    3    ^  ^^    *— 

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of  the  sale  of  public  lands  in 

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California. 

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(4)     Gifts,    escheats,    etc., 

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T^H  cc  ©  3  a  rs 

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as  may  be  allowed  the  fund  by 

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the  State  legislature. 

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Cfi    &H    .£ 

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A    PRIMER    OF   SCHOOL    FINANCE 15 

In  addition  to  the  interest  on  this  fund,  there  is  set  aside  out  of  the 
proceeds  of  the  Collateral  Inheritance  Tax  $250,000  per  year,  which  is  dis- 
tributed to  the  schools  of  the  State  as  aid. 

In  addition  to  these  allowances  the  State  Controller  must  take  out  of 
the  General  Fund  of  the  State  an  enormous  sum  of  money  and  place  it  in 
the  School  Fund.  This  sum  must  be  sufficient  to  distribute  to  the  element- 
ary school  districts  of  the  State  $15  for  each  unit  of  average  daily  attend- 
ance. The  General  Fund  of  the  State  is  not  raised  by  direct  tax  on  real 
estate  and  personal  property,  but  by  indirect  taxes.  The  chief  indirect 
taxes  of  California  are  the  Corporation  Tax  and  the  Collateral  Inheritance 
Tax. 

Up  to  1915  the  poll  tax  yielded  an  enormous  fund  which  was  used  almost 
entirely  for  the  support  of  the  public  schools.  The  people  voting  at  the 
polls  in  the  fall  of  1914  passed  a  constitutional  amendment  prohibiting  the 
collection  of  a  poll  tax.  This  was  a  staggering  blow  at  the  public  schoois. 
Fortunately  for  the  public  schools  of  California,  the  Governor  and  the  last 
two  legislatures  have  put  through  laws  that  have  made  it  possible  for  us  to 
get  other  revenues  to  make  good  the  terrible  loss. 

(For  sample  High  School  Budget  see  following  page. ) 


HIGH  SCHOOL  SPECIAL  TAX  REQUEST 

To  the  Board  of  Supervisors  of  Los  Angeles  County,  California: 

As  provided  in  Sections  1755  and  1756  of  the  Political  Code,  the  Govern- 
ing Body  of  Pomona  City  High  School  District  submits  to  you  its  estimate 
that  $38,000  is  the  sum  of  money  needed  by  the  aforesaid  High  School  Dis- 
trict for  the  purposes  hereinafter  stated,  for  the  school  year  ending  June  30, 
1916.  We  estimate  the  district's  income  for  said  school  year  as  follows: 

Total  Balance  (not  including  Building  Funds)  July  1,  1915 $19,470 

Estimated  Income  from  State  arid  County  38,300 

Tuition  of  400  pupils  attending  Intermediate  Schools  at  $30  each 12,000 

Total  estimated  income $69,770 

The  High  School  District  will  need  to  have  and  to  expend  money  for  the 
year  ending  June  30,  1916,  as  follows: 

For  debts  outstanding  July  1,  1915  (July  1,  Aug.  1,  Sept.  1,  teach- 
er's salaries  belonging  to  1914-15) $15,000 

For  salaries  of  49  teachers,  principals  and  superintendents,  includ- 
ing four  Intermediate  Schools  62,000 

For  salary  of  one  stenographer 500 

For  salaries  of  four  janitors 4,000 

For  salary  of  one  librarian 900 

For  books,  charts,  maps  and  flags 1,000 

For  dray  age,  freightage  and  expressage,  $200;  telephone,  $100 300 

For  fuel,  $600;  light  and  power,  $800  1,400 

For  insurance,  fire,  $100;  industrial,  $120 220 

For  janitors'  supplies,  $2,000;  laundry  work,  $100 2,100 

For  paper,  $100;  printing  and  postage,  $400 500 

For  lavatory  and  toilet  supplies,  $250 ;  water,  $250 

For  transportation  of  pupils 300 

Art,  including  architecture,  fine  and  applied,  supplies 500 

Agriculture,  $700;  commercial  subjects,  $250 950 

Domestic  art,  $200;  domestic  science,  $300 500 

Metal  working,  $1000;  woodworking,  $500 1,500 

Health  and  development  and  physical  culture 200 

Science  

For  supplies  not  named  above  2,000 

For  ordinary  repairs 1,000 

For  rent  of  land  for  agriculture 400 

For  erecting  one  school  building  in  Building  Trades  Course 2,000 

For  rent  of  Washington  Building  and  upper  floors  of  San  Antonio, 

Garev  and  Hamilton  Buildings  for  Intermediate  School  purposes  8,000 

For  Night  School * 1,500 

For  balance  to  carry  over  to  July  1,  1916 *  0 

Total  estimated  needs 107,770 

Total  estimated  income  (see  above) 69,770 

Total  Special  Tax  needed $38,000 

Signed  by  the  President  and  Secretary  of  the  Board  of 
Education  of  the  Pomona  High  School  District. 

*  A  balance  should  always  be  provided  for  at  this  point.  It  was  not  so 
provided  for  by  the  Pomona  Board  in  1915,  so  that  a  saving  might  be  made 
to  the  taxpayers.  The  rate  of  taxation  was  accordingly  reduced  from  75 
cents  on  the  $100  (rate  for  several  years  past)  to  50  cents  for  1915-16. 


